Switch to:
Coca-Cola Enterprises Inc (NYSE:CCE)
Beneish M-Score
-2.96 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Coca-Cola Enterprises Inc has a M-score of -2.96 suggests that the company is not a manipulator.

CCE' s 10-Year Beneish M-Score Range
Min: -4.69   Max: -0.74
Current: -2.96

-4.69
-0.74

During the past 13 years, the highest Beneish M-Score of Coca-Cola Enterprises Inc was -0.74. The lowest was -4.69. And the median was -2.55.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Coca-Cola Enterprises Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8716+0.528 * 0.9705+0.404 * 0.9565+0.892 * 0.9749+0.115 * 0.8604
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0296+4.679 * -0.0519-0.327 * 1.1408
=-2.96

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,475 Mil.
Revenue was 1631 + 1925 + 2136 + 2333 = $8,025 Mil.
Gross Profit was 568 + 669 + 808 + 846 = $2,891 Mil.
Total Current Assets was $2,517 Mil.
Total Assets was $8,190 Mil.
Property, Plant and Equipment(Net PPE) was $1,957 Mil.
Depreciation, Depletion and Amortization(DDA) was $305 Mil.
Selling, General & Admin. Expense(SGA) was $1,898 Mil.
Total Current Liabilities was $2,390 Mil.
Long-Term Debt was $3,678 Mil.
Net Income was 96 + 112 + 238 + 198 = $644 Mil.
Non Operating Income was 2 + -7 + 0 + 1 = $-4 Mil.
Cash Flow from Operations was 158 + 391 + 378 + 146 = $1,073 Mil.
Accounts Receivable was $1,736 Mil.
Revenue was 1870 + 2032 + 2174 + 2156 = $8,232 Mil.
Gross Profit was 650 + 688 + 787 + 753 = $2,878 Mil.
Total Current Assets was $2,770 Mil.
Total Assets was $9,691 Mil.
Property, Plant and Equipment(Net PPE) was $2,324 Mil.
Depreciation, Depletion and Amortization(DDA) was $305 Mil.
Selling, General & Admin. Expense(SGA) was $1,891 Mil.
Total Current Liabilities was $2,564 Mil.
Long-Term Debt was $3,730 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1475 / 8025) / (1736 / 8232)
=0.18380062 / 0.21088435
=0.8716

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(669 / 8232) / (568 / 8025)
=0.34961127 / 0.36024922
=0.9705

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2517 + 1957) / 8190) / (1 - (2770 + 2324) / 9691)
=0.45372405 / 0.47435765
=0.9565

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=8025 / 8232
=0.9749

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(305 / (305 + 2324)) / (305 / (305 + 1957))
=0.11601369 / 0.13483643
=0.8604

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1898 / 8025) / (1891 / 8232)
=0.2365109 / 0.22971331
=1.0296

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3678 + 2390) / 8190) / ((3730 + 2564) / 9691)
=0.74090354 / 0.64946858
=1.1408

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(644 - -4 - 1073) / 8190
=-0.0519

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Coca-Cola Enterprises Inc has a M-score of -2.96 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Coca-Cola Enterprises Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.92831.09721.00390.99952.23270.83770.84581.06091.03860.9931
GMI 1.01151.02151.03561.033410.99871.00991.01681.03210.9688
AQI 0.99350.90651.00270.55341.53261.030.95251.0131.03860.9643
SGI 1.03041.05661.05721.04160.29881.03021.23380.97321.01861.0063
DEPI 0.97471.0460.96310.94661.11221.2180.84460.9981.08930.9027
SGAI 0.99390.98720.96370.99060.79641.01380.96921.01470.96980.9968
LVGI 0.97161.09610.94341.48960.38521.55371.12611.06861.09211.1163
TATA -0.04330.0077-0.0131-0.3847-0.0321-0.0233-0.0121-0.0287-0.0168-0.0365
M-score -2.71-2.35-2.45-4.57-1.66-2.86-2.54-2.59-2.49-2.73

Coca-Cola Enterprises Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.06091.01840.99241.11581.03861.0421.22961.03070.99310.8716
GMI 1.01681.01771.02541.03161.03211.02341.00010.98010.96880.9705
AQI 1.0131.00621.01561.01211.03860.99340.96220.99950.96430.9565
SGI 0.97320.96820.98561.00711.01861.02341.05221.0341.00630.9749
DEPI 0.9980.99361.03611.07941.08931.10661.10250.9720.90270.8604
SGAI 1.01471.04581.02971.01440.96980.91930.93890.94870.99681.0296
LVGI 1.06861.14011.12591.13351.09211.0831.09211.06951.11631.1408
TATA -0.0285-0.0517-0.0278-0.0232-0.0168-0.0165-0.0157-0.0149-0.0365-0.0519
M-score -2.59-2.78-2.65-2.49-2.49-2.49-2.32-2.52-2.73-2.96
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK